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Hauliers hit by fuel price fixing
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• A fuel cartel operating in the North-East has cost local hauliers thousands of pounds in inflated fuel charges.
The cartel was uncovered by the Office of Fair Trading following a tip-off from a Tyneside consumers' association member who had received identical quotes from eight suppliers.
Now 17 fuel distributors from North Yorkshire to Northumberland have admitted meeting last August and agreeing on a minimum price formula. This practice, which added up to 2.5p per litre to diesel prices paid by hauliers for 900-2,299-litre orders, and 2p per litre if customers bought between 2,300-4,599 litres.
For purchases over 4,600 litres the price was negotiated normally. One firm, British Fuel Company, admits attending the meeting but denies taking part in the cartel.
A North-East general haulier who was a victim of the fourmonth price-fixing campaign told CM: "I have been with this fuel company for 30 years and I am incensed by this price-fixing. Even if it was just one penny a litre they were creaming off, it is still a lot of money. I use 20,000 litres of diesel a month and I'm a small haulier. What about the man with only one wagon, who's already fighting for his living?"
De Lancey Lands, a property company with a transport division, has been using one of the cartel companies for the past three years to supply 2,500 litres of diesel a week. "It's bad news," says managing director Sir Charles Aitchison, "I will be seeking an explanation from our suppliers," The OFT is considering whether to take the companies involved in the cartel to court to seek orders prohibiting them from making similar agreements in the future. Sir Gordon Borne, OFT director general, says: "Cartels invariably result in the exploitation of the customer. Increasingly the vigilant customer is proving to be a valuable ally in the fight against cartels."
Distributors involved in the cartel who were approached by Commercial Motor claimed that so far they have not been contacted by customers demanding compensation. When asked if they would be willing to offer money back, all refused to comment.